A Look Into Real Estate Sector Value Stocks

What Defines a Value Stock?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:

1. Ready Capital RC - P/E: 8.17
2. Forestar Group FOR - P/E: 8.97
3. Realogy Holdings RLGY - P/E: 6.2
4. New Residential Inv NRZ - P/E: 8.05
5. Nam Tai Property NTP - P/E: 8.94

This quarter, Ready Capital experienced an increase in earnings per share, which was 0.52 in Q2 and is now 0.64. The company's most recent dividend yield sits at 10.55%, which has decreased by 0.67% from 11.22% last quarter.

Most recently, Forestar Group reported earnings per share at 0.85, whereas in Q3 earnings per share sat at 0.6. This quarter, Realogy Holdings experienced a decrease in earnings per share, which was 1.33 in Q2 and is now 0.99. The company's most recent dividend yield sits at 7.0%, which has increased by 4.0% from 3.0% last quarter.

Most recently, New Residential Inv reported earnings per share at 0.44, whereas in Q2 earnings per share sat at 0.31. Its most recent dividend yield is at 9.22%, which has decreased by 1.09% from 10.31% in the previous quarter.

Nam Tai Property has reported Q3 earnings per share at -0.11, which has decreased by 1000.0% compared to Q2, which was -0.01. Its most recent dividend yield is at 2.26%, which has decreased by 0.06% from 2.32% in the previous quarter.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.